MATERIALS FOR AN ENERGY EFFICIENT FUTURE Annual General Meeting, May 31, 2019
Important Notice This presentation contains only a brief overview of Greenland Minerals and Energy Ltd (Greenland Minerals) and its respective activities and operations. The contents of this presentation may rely on various assumptions and subjective interpretations which are not possible to detail in this presentation and which have not been subject to any independent verification. This presentation contains a number of forward looking statements. Known and unknown risks and uncertainties, as well as factors outside of Greenland Minerals’ control, may cause the actual results, performance and achievements of Greenland Minerals to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law, Greenland Minerals and its officers, employees and advisers are not liable for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue and has been prepared without consideration of your objectives and needs and financial position. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Greenland Minerals or its activates. JORC Code (2012) Competent Person Statement – Mineral Resources and Ore Reserves The information in this report that relates to Mineral Resources is based on information compiled by Mr Robin Simpson, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Simpson is employed by SRK Consulting (UK) Ltd (“SRK”), and was engaged by Greenland Minerals and Energy Ltd on the basis of SRK’s normal professional daily rates. SRK has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence. Mr Simpson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Robin Simpson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in the statement that relates to the Ore Reserves Estimate is based on work completed or accepted by Mr Damien Krebs of Greenland Minerals and Energy Ltd and Mr Scott McEwing of SRK Consulting (Australasia) Pty Ltd. Damien Krebs is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the type of metallurgy and scale of project under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears. Scott McEwing is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears. The mineral resource estimate for the Kvanefjeld Project was updated and released in a Company Announcement on February 12 th , 2015. The ore reserves estimate was released in a Company Announcement on June 3 rd , 2015. There have been no material changes to the mineral resource estimate, or ore reserves estimate since the release of these announcements.
Executive Summary Globally Significant Advanced Stage of Shenghe Resources >1 Billion Tonne Largest shareholder Development JORC Resource Long term supplier of providing technical >10 years of sustained Initial 37 year mine life rare earth elements input & fully integrated research and enabling infrastructure critical for clean, green value chain connecting development. development. Year technologies mine to end users Permitting process round shipping access advanced Rare Earth Prices Nd, Pr, Tb and Dy Regulatory Environmental Largest projected Framework Outcomes Strong demand output of key rare outlook and Implemented by Greenland set to earth elements from constrained supply Greenland & Danish provide critical first major non ‐ given China led policy Governments to minerals to facilitate refractory orebody changes manage project key global agendas
Kvanefjeld Project Setting Kvanefjeld is located near existing infrastructure in southern Greenland, with year ‐ round direct shipping access, and a mild climate; an optimal location
Centred on a Multi-Billion Tonne Outcropping Ore Seam The only known bulk occurrence of steenstrupine globally – a unique, non ‐ refractory rare earth mineral, that is conducive to simple, low ‐ cost processing
Kvanefjeld Project Overview North Atlantic Ocean Kvanefjeld Taseq Basin (mine area) Narsaq Valley >1 billion tonne multi ‐ element resource, largest REO inventory under JORC code Initial 37 year mine life, scope for significant extension Close to existing infrastructure with year round shipping access Major infrastructure (excluding port) will not be visible from nearby Narsaq Town Project capable of supporting decades of operation Project footprint to site over host geology, and existing environmental baseline EIA demonstrates no risks to environment, workers, communities
Advanced Project Status Kvanefjeld Plateau Outcropping lujavrite Historic adit (900m through resource) Bulk sample material from adit 2012 Prefeasibility Study 2015 Feasibility Study – Updated in 2016 2017 ‐ 18 Metallurgical optimisation guided by Shenghe 2018 Engineering optimisation to minimise civil costs 2019 Update operating and capital costs for optimised project form
Vast Mineral Inventory Tonnes [M] Tonnes [M] Clear scope to expand capacity and extend mine life Resources Reserves 1000 100 Reserve Measured 108M 143M Proven 750 75 Indicated 308M Plant Feed - 500 50 37 yrs Resource Inferred Probable 559M 250 25 0 0 Total Mineral Resource Estimates and Ore Reserve Estimates are independently established by SRK Consulting
Kvanefjeld – A Complete Rare Earth Project – Nd Pr Dy Tb 100% 80% Yttrium 60% Dysprosium Terbium Neodymium Praseodymium LaCe 40% Other Rare earth plot highlighting the enrichment across the rare earth spectrum. Kvanefjeld is compared to Mt Weld, and typical 20% bastnasite (source: ANSTO). Kvanefjeld’s enrichment across the RE spectrum creates a strong alignment with 0% Demand GGG Northern Peak Alkane Hastings Arafura RE market, through exposure to Nd, Pr, Dy and Tb: a complete RE project Demand approximates the current rare earth market by value (volume x current price). Projected output value distribution of select ASX ‐ listed companies
Process Flowsheet 37 Year Mine Reserves at Kvanefjeld Deposit (~10% of resource base) Classification Inventory REO U 3 O 8 Zn (JORC 2012) (Mt) (ppm) (ppm) (ppm) (Based on 2016 Feasibility Study) Proven 43 14,700 352 2,700 Probable 64 14,000 368 2,500 Pre ‐ optimisation Total 108 14,300 362 2,600 JORC 2012: 1.01Billion tonnes through 3 deposits contains 11.13 Mt REO, 593 Mlbs U 3 O 8 , 2.42 Mt zinc Ore Residues Products Zinc Concentrate 6000 tpa Mine and Flotation Tailings Concentrator Fluorspar 16,000 tpa (>90% vol) Uranium Concentrate 1 Mlb’s Leach Circuit Refinery Tailings (<10% vol) Rare Earth Intermediate concentrate Greenland REO Intermediate Product Ex ‐ Greenland Nd ‐ 3860 tpa Both flotation and refinery Pr ‐ 1224 tpa circuits undergoing optimisation Rare Earth Eu ‐ 30 tpa Tb ‐ 40 tpa to improve efficiency and simplify Separation Dy ‐ 237 tpa
Kvanefjeld Project – Engineering Optimisation A team of leading international engineering firms visited Kvanefjeld in August 2018 for collaborative onsite surveys/studies Nuna Logistics, Tetra Tech, PDN Engineers, China ‐ CCC Owing to natural erosional processes, the area has elevated background levels of rare elements and fluorine Follow ‐ up studies have resulted in a 44% reduction in civil construction costs to US $175M – including indirect costs and contingencies Road up the valley will be upgraded and connected to new port facilities are the base of the valley Optimised project capital costs expected in the coming weeks – drawing on outputs of both engineering and metallurgical optimisation
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